EOS Hospitality pays $176.4M for William Vale hotel in Williamsburg through All Year bankruptcy

Manhattan-based EOS Hospitality through the entity William Vale Owner LLC paid $176.4 million to the entity Wythe Berry Fee Owner LLC for the hotel building (HB) at 111 North 12th Street in Williamsburg, Brooklyn.
The deal closed on June 18, 2024 and was recorded on July 1, 2024. The property has 185,141 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $953 per the PincusCo analysis. (The price per square foot analysis is the transaction price divided by square feet as reported in public records and assumes no air rights have been sold.)
The seller bought the property on May 4, 2014, for $10 million. The signatory for All Year Management and Tel Aviv Stock Exchange bondholders was Assaf Ravid. The signatory for EOS Hospitality was Tom Burns. The contract date was February 13, 2024. This is a bankruptcy sale, U.S. Bankruptcy Court for the Southern District of New York 22-11340 (MG). Bloomberg reported on the sale last month, noting that Yoel Goldman’s All Year Holdings filed for bankruptcy in 2021. The hotel has 183 units. The 2022 bankruptcy was an involuntary filing by creditors Mishmaret Trust Company, Yelin Lapidot Provident Funds Management, Phoenix Insurance Company and Klimark Opportunity Fund III. The hotel was originally developed and owned by All Year Management and Zelig Weiss.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer EOS Hospitality had purchased any other properties and has no record it sold any properties over the past 24 months.

The property

The hotel building in Williamsburg has 185,141 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 200 feet and is 250 feet deep with a total lot size of 49,999 square feet. The zoning is M1-2 which allows for up to 2 times floor area ratio (FAR) for manufacturing. The city-designated market value for the property in 2022 is $39.9 million.

Violations and lawsuits

The property was involved in three lawsuits and one bankruptcy over the past two years. The highest value suit was a $166 million judgment concerning a arbitration filed on September 1, 2022, by Yoel Goldman against Zelig Weiss. The bankruptcy was filed on October 6, 2022, by Mishmaret Trust Company, Yelin Lapidot Provident Funds Management, Phoenix Insurance Company, and Klimark Opportunity Fund III citing assets of $165 million. In addition, according to city public data, the property has received $9,575 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on September 2, 2016. There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot.

The neighborhood

In Williamsburg, The bulk, or 39 percent of the 50.4 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 25 percent of the space. In sales, Williamsburg has the 5th highest sale turnover among other neighborhoods in the city with $2 billion in sales volume in the last two years. For development, Williamsburg has 4 times the average amount of major developments relative to other neighborhoods and is the 2nd highest in Brooklyn. It had 4.4 million square feet of commercial and multi-family construction under development in the last two years, which represents 9 percent of the neighborhood’s built space.

The block

There are no active new building construction projects on this tax block.

The majority, or 82 percent of the 225,141 square feet of built space are hotel buildings, with industrial buildings next occupying 18 percent of the space.

The seller

The PincusCo database currently indicates that All Year Management owned at least 45 commercial properties with 397 residential units in New York City with 404,863 square feet and a city-determined market value of $73.2 million. (Market value is typically about 50% of actual value.) The portfolio has $14.6 million in debt, with top three lenders as Signature Bank, Dime Community Bank, and Maverick Real Estate Partners respectively. Within the portfolio, the bulk, or 51 percent of the 404,863 square feet of built space are walkup properties, with elevator properties next occupying 25 percent of the space. They are all located in Brooklyn.

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